Initial results of the fuel- marking project to stamp out smuggling show that 40% of the 100 retail outlets sampled had at least one tank with significantly diluted fuel on which no tax was paid.

Region 2 (Pomeroon/ Supenaam) showed the highest cases of illegality.

But since the announcement and implementation of the programme in late October, legal fuel sales have risen from 30M litres per month to 50M litres indicating that the programme may be already deterring smuggling.

The fuel-marking exercise involves adding chemical agents that identify legal petrol, kerosene and diesel.

According to a report from the Guyana Energy Agency (GEA), the increased sales are equivalent to US$5.5M of which some 30% is taxable.

These figures also show that 20% of all fuels sold locally is illegal.

Prime Minister Samuel Hinds said yesterday that the data was taken from fuel outlets in all regions expect those of Regions One (Barima/Waini), Seven (Cuyuni/Mazaruni), Eight (Potaro/Siparuni), Nine (Upper Takatu/Upper Esse-quibo) and Ten (Upper Demerara/Upper Berbice).

Hinds was at the time addressing a press briefing along with GEA Head Joseph O'Lall and Tim Wilkinson, head of the United Kingdom Company, BIOCODE, who is responsible for marking legal supplies of fuel.

According to Hinds, "the programme is not to put people in jail but to put an end to smuggling."

But he indicated that prosecutions with respect to illegal fuel finds should start from January once the legislation widening the powers of GEA, which was laid in parliament yesterday, was enacted into law.

The explanatory memorandum to the bill which amends the GEA Act 1997 notes the additional powers to the agency to grant import licences as well as the marking of all petroleum and petroleum products.

Wilkinson, in assessing the local situation yesterday said Guyana's position was no different from several other countries. According to Wilkinson, Guyana was ideal for smuggling because of its extensive borders.

However, he was confident that with the addition of the bio-agent marker to legal fuel supplies the temptation to smuggle would diminish.

The bio-agent is added through mixing 100 parts per million to fuel and can be checked either on site though a simple test or later through more extensive laboratory tests. The task of marking and testing is to be undertaken by 37 specially trained persons whose integrity would, it was noted, be constantly challenged. Wilkinson said steps had been taken to ensure that his staff remained above board including threats of imprisonment, withholding of gratuities of all employees and in the case of things appearing suspicious, a check on employee bank accounts along with their spending habits.